A Study On Bank Card Acceptance Business Of Bank

1985, First bank card in China was issued by Bank of China in Zhuhai, Guangdong Province. In the past30years, China Bank Card Industry experiences a rapid expansion and development. Bank card has replaced deposit book to be the most staple tool for personal finance service. But when it comes to the profitability, interest spread always goes first in commercial banking;bank card and its acceptance business are usually not attached importance. However, with the rise of enterprises and the development of the consumer market, they come into view more and more in recent years. Bankers use them to get close to consumers and minor entrepreneurs with custom-made products such as CMB all-in-one business card and CIB business express.How to reach target customers effectively and quickly? This paper will answer the question with analyzing the profit model and operation mode of bank card acceptance business. Moreover, the paper also discusses how to develop retail banking according tominor entrepreneurs’ management.The paper is composed of five components. It firstly presents the current situation of China’s bank card industry and bank card acceptance business, brings forth the main questions that will be discussed afterwards and show the logical structure of the paper. Secondly it introduces the concepts of payment, bank card and its acceptance business, describes the development history of China’s bank card acceptance business and scans the competitors on the ground. Then with introducing the concept of profit model, the paper tries to find out the factors that influence the profit model and explicates two patterns from which the bank card acceptance business earn profits. Next using the SWOT analytical method, it analyzes strengths and weaknesses of the bank, opportunities and treats that the bank would confront and brings forward some suggestions for the bank to manage the business. Last it summarizes the outcomes of the former study.